Schroders launches two new Active ETFs in Global Equities and Australian High Yield Credit, expands range
Schroders Australia has launched two new Active ETFs – the Schroder Global Equity Alpha Fund - Active ETF (ASX: ALPH) and the Schroder Australian High Yielding Credit Fund - Active ETF (CBOE: HIGH).
Schroders has expanded its Active ETF suite to four offerings across a diverse set of asset classes, including fixed income, multi-asset, global equities and Australian credit. These funds complement the existing Active ETF’s, the Schroder Absolute Return Income Active ETF (CBOE: PAYS) and the Schroder Real Return Active ETF (ASX: GROW), as they look to expand their listed range further over the year.
As an early pioneer in Australia's active ETF market, Schroders launched GROW on the ASX in 2016, demonstrating its commitment to innovation in investment solutions.
Schroders Australia CEO and CIO, Simon Doyle, says: “For over 60 years in Australia, and over 220 globally, Schroders’ compounded investment knowledge and expertise has helped us to deliver consistent, long-term returns for our local clients. These recent Active ETF launches demonstrate how we continue to position ourselves to meet the needs of investors, providing access to products with successful long-term track records that have not been readily accessible to the wider investor community until now.
“In this era of regime shift and increasingly unpredictable times, we have carefully curated a suite of products that can benefit investor portfolios. We are excited to bring more Active ETFs to market this year”, Mr Doyle adds.
ASX:ALPH is an unconstrained, diversified global equities fund targeting consistent outperformance with index levels of risk. Its portfolio includes long-term structural opportunities and short-term tactical ideas from a global selection of over 4,000 global stocks. The Fund provides exposure to various countries, industries and styles that adapt through the economic and investment life-cycle.
Natalie Morcos, Head of Product, Solutions and Client Delivery, Schroders Australia, says the underlying strategy has a strong 18-year track record through multiple market cycles.
“Historically global markets have outperformed domestic equities over the longer term, certainly for the last decade. For example, the S&P 500 and the MSCI World have outperformed the S&P/ASX 200 by 8% and 3% per annum respectively over that period.
“The portfolio is made up of our best ideas to drive consistent outperformance, regardless of market conditions. ALPH aims to provide capital growth in excess of the MSCI All Country World Index over a three-to-five-year period.
“While pursuing a style agnostic approach, ALPH tilts to underweight value and overweight quality and growth, targeting companies that have strong growth prospects yet to be recognised by the market.
“ALPH offers attractive pricing with a management fee of 0.65 per cent and no performance fees,” she says.
The second new Active ETF, CBOE:HIGH, invests in domestic corporate and financial credit across sectors, issuers, maturity, ratings grade and capital structure dimensions, including subordinated debt. It combines an attractive yield with the capital protection of institutional grade fixed income.
Ms Morcos says the result is a diversified portfolio of credit securities with the potential to deliver consistent returns above cash and term deposits, while maintaining lower risk and volatility than equities.
“HIGH is an actively-managed credit strategy that seeks to deliver returns of 2.5-to-3.0 per cent a year above the cash rate, before fees, all the way through the cycle.
“HIGH provides access to the traditionally defensive higher-yielding wholesale credit universe and it is suitable for those who are looking for enhanced income solutions beyond conventional equity and cash investments, while avoiding the liquidity constraints of private markets,” she says.
Mr Doyle adds that “The benefits of Active ETFs are better understood by the market today, including accessibility with no minimum investment amount, liquidity and full transparency. Through Schroders Active ETF offerings, investors can access decades of proven active management experience across domestic and global markets.”
Schroders will be continuing to expand our Active ETF range over 2025 in response to ongoing popularity and client demand.
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